4.2012 A maga zine from sca on trends, markets and business
The ‘oops’
moments
the
Saw blade
effect
Hormones
sustainable
make your
decisions
investment
soars
Trash is treasure
Recycling
BOOM
Susanna Lindgren
Shape is a magazine from SCA,
primarily geared toward customers,
shareholders and analysts, but also
for journalists, opinion leaders and
others interested in SCA’s business
and development. Shape is
published four times a year. The next
issue is due in March 2013.
Publisher
Joséphine Edwall-Björklund
Managing Editor
Marita Sander
Editorial
Anna Gullers,
Ylva Carlsson, Inger Finell
Appelberg
Design
Markus Ljungblom, Kristin Päeva
Appelberg
Printer
Sörmlands Grafiska AB,
Katrineholm
Address
SCA, Corporate Communications,
Box 200, 101 23 Stockholm,
Sweden.
Telephone +46 8 7885100
Fax +46 8 6788130
SCA Shape is published in Swedish, English,
Spanish, German, French, Dutch and Italian.
The contents are printed on GraphoCote
90 grams from SCA. Reproduction only by
permission of SCA Corporate Communications. The opinions expressed herein are
those of the authors or persons interviewed
and do not necessarily reflect the views of
the editors or SCA. You can subscribe to SCA
Shape or read it as a pdf at www.sca.com.
Address changes can done at
www.sca.com/subscribe or by e-mailing
sophie.brauner@sca.com
4.2012 A MAGA ZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS
The ‘oops’
moments
THE
SAW BLADE
EFFECT
HORMONES
make your
decisions
SUSTAINABLE
INVESTMENT
SOARS
Trash is treasure
RECYCLING
BOOM
Cover photo:
Staudinger+Franke
CURING CURIOSITY
WITH TRAVELS
CURIOSITY MADE her leave the
job at one of Sweden’s leading
newspapers and move to Ireland.
She brought her experience as
a daily news reporter to Dublin,
but did soon find herself involved
in completely new fields as well,
like working for the EU and travelling the world with a voluntary
organisation. What was planned
to be a short excursion to discover the green island nearly became
a permanent move, but nine
years and three children later she
moved to Amsterdam where she
continued to cure her curiosity by
exploring the Dutch life.
News coverage has over the
years become feature articles and the working field has
gradually got more technical.
The focus has always remained
the person behind the discovery, the research or the
construction.
Since moving back to Sweden
she runs her own freelance
business. When not travelling
she finds that walking the dog
on the sea shore is the best way
to clear the thoughts, along with
renovating the old summerhouse and restoring flee market
furniture bargains.
Contributor
SCA’S SOCIAL MEDIA SITES
Youtube.com/
SCAeveryday shows
commercials and videos from SCA’s
press conferences, presentations
and interviews with executives and
employees.
Slideshare.com/
SCAeveryday
is for investors and analysts, who
can download presentations from
quarterly reports and annual general
meetings.
Facebook.com/SCA is
intended to attract talent,
engage users and provide information
in a way that complements sca.com.
Scribd.com/
SCAeveryday
makes some 50 publications available,
including SCA’s sustainability report,
its Hygiene Matters report and Shape
magazine.
Twitter.com/SCAeveryday
provides a good summary of
every thing happening at sca.com and
in SCA’s social media. The aim is to
provide various users, journalists and
bloggers with relevant information.
Flickr.com/
HygieneMatters
supports the launch of the global
report Hygiene Matters with images.
2 SCA SHAPE 4 2012
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CONTENTS
06. Valuable rubbish
The secondhand market for trash is expanding
with rising awareness of our planet’s limits.
16. Sense for business
Professor Diana Derval takes a close look at sensory perceptions
and turns her consumer research into hot marketing.
20. A cost-effective approach
Print advertising, delivered through targeted direct mail,
challenges the digital channels.
22. Risk of leakage
Incontinence affects people of all ages. One-tenth of all teenagers
and young women suffer from bladder problems.
25. Slim and better
Thinner saw blades mean more wood and less waste.
A sawmill in Sweden reports big gains.
32. Importance of branding
Strong brands often do better than others when times get tough.
36. Great expectations
Wind power production in the European Union is expected
to triple by 2020. SCA will soon become a major producer of
renewable electricity.
ALSO...
SCA SUPPORTS forest protection – page 4
12 HOURS with Angela Martinez – pages 30-31
A SKIPPER WHO knows what it takes – page 34
HIGH RATINGS in sustainability – page 35
How do you transport a wind power tower?
Find the answer on page 36.
SCA SHAPE 4
3 2012 3
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UPDATED
FEATURE
Business news from SCA
GETTY IMAGES
SCA official to
help guard forests
THE FOREST STEWARDSHIP COUNCIL
will soon get the company of Hans
Djurberg, sustainability director at
SCA. Djurberg has been elected to
the FSC International board of directors. FSC is the most important and
recognized platform available for
dialogue on forestry, both globally
and nationally.
“Iam very proud to have been
elected, and it is of great impor-
tance that the forest management
and industry structure we represent
has a voice in FSC’s senior management” Djurberg says. “It is critical for
the viability of the system that forest
owners and forest-based industry
participate actively in shaping it for
the future, not least to secure that
demands are possible to implement
and that they make a difference on
the ground.”
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GETTY IMAGES
AUTUMN NEWS
BRITISH NEWSPRINT FACILITY
STAKE SOLD
GETTY IMAGES
Strong wind power
STATKRAFT SCA VIND AB is investing 6 billion Swedish kronor (900 million US dollars)
in two wind parks in northern Sweden. The
company, owned by Statkraft (60 percent)
and SCA Forest Products (40 percent),
is planning to build seven wind parks in
Sweden with 360 wind turbines. Two of the
wind parks are already under construction.
In total, the seven wind parks will provide
production of 3,000 GWh a year, more than
2 percent of all electricity used in Sweden.
Read more on page 36
“A new efficiency program has been initiated within
the hygiene operations. It will provide annual cost
savings of some 300 million euros.”
CEO Jan Johansson on the Capital Market Day, November 5
CARBON DISCLOSURE RECOGNIZED
SHUTTERSTOCK
SCA HAS QUALIFIED for the Carbon Disclosure Leadership Index for the third time.
The index highlights the constituent companies of the Nordic 260 Index
that have displayed the most professional approach to corporate governance
in regard to climate change disclosure
practices.
The index, published by the Carbon
Disclosure Project, provides an evaluation
tool for institutional investors and recognizes companies with the best reporting practices and performance to tackle carbon
dioxide emissions and climate change.
SCA has divested its 50
percent shareholding in
the UK-based newsprint
facility Aylesford Newsprint to private equity company Martland Holdings.
SUSTAINABLE
ENOUGH FOR
DOW JONES
SCA has once again been
included in the Dow Jones
Sustainability Europe
Index, one of the world’s
most prestigious sustainability indexes.
For more information:
www.sustainabilityindexes.com
Read more on page 35.
INVESTMENT
IN LIME KILN
A new lime kiln at the
kraftliner mill in Munksund,
Sweden, will substitute
biofuel for oil, saving about
50 million Swedish kronor
(5.7 million euros) a year
and reducing fossil carbon
dioxide emissions by 75
percent. The lime kiln is
expected to be put in operation in fall 2014.
The investment is worth
about 490 million kronor
(56 million euros).
SCA SHAPE 4 2012 5
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T
PHOTO DON HANKINS, GALLERY STOCK
EN YEARS AGO, a farmer might
have left an old tractor in the
field to rust rather than bother
recycling it. No longer. Prices for
used metal have risen so high that
people see money in trash, and they take
their cast-offs to the scrapyard.
“On the metals side, there is very little
that does not get recycled,” says Björn
Grufman, president of the Bureau of
International Recycling (BIR), an association based in Brussels that represents
some 850 businesses and 40 federations
across the globe. “For metal, the material
is coming out of the woodwork.”
Overall, public awareness of recycling
has risen significantly in recent years, he
says, and a wider variety of materials are
being recycled. While metals command
the highest prices, established global
markets exist for such commodities as
wastepaper, shredded tires, scrap carpet,
glass, vinyl, polyurethane foam, plastic
bags and used footwear.
“There is a huge international trading
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TREASURE
FROM
trash
text NANCY PICK
In waste lies opportunity. The secondhand market for
trash – paper, plastic and metal – is big business,
generating money for recycling processors and
investors around the globe.
Nike’s
Reuse-a-Shoe
program turns old
athletic shoes into
new sports
surfaces.
SCA SHAPE 4 2012 7
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focus: recycling
market in recycled raw materials,”
Grufman says. “These are major commodities, just like virgin raw materials.
Many traders today buy and sell both virgin and recycled.”
Recycling has dramatically increased
over the past decade, due in part to heightened environmental awareness and concern about the future of our planet.
While recycling remains voluntary in
most nations, the EU has passed legislation making it mandatory for its member
countries. By 2020, EU countries will be
required to recycle, compost or reuse 50
percent of all household rubbish. Countries that fall short will face penalties.
In general, raw recyclables flow in one
direction: from countries with high GDP s
to countries with lower ones. “China is the
big magnet,” Grufman says. “With their
five-year plans, their need for raw materials is enormous.” China drives the entire
market in recovered paper, importing
some 24 million metric tons a year, mainly
from the US and Europe.
A
lthough spot prices have been
P H O T O : s Tau d i n g e r+ f r a n k e
volatile, Grufman generally
sees progress in the markets for
traditional raw recyclables like
plastics and paper. In recent
years, the paper market has been changing, as newspaper readership declines in
much of the developed world. “It’s difficult
to obtain the amount of newsprint you had
10 or 20 years ago,” Grufman says. “But
on the other hand, there’s more packaging
available.” With the rise of online shopping, the average household is now receiv-
ing many more cardboard shipping boxes
than in the past.
Meanwhile, paper recycling rates have
been rising. In 2011, the US recycled about
67 percent of its paper and paperboard.
The EU topped that slightly by recycling
70 percent of its paper and paperboard in
2011, despite lagging rates in some eastern European countries. China, in addition to importing huge amounts of waste
paper from other countries, has begun
collecting more of its own used paper.
What does paper recycling involve?
Typically, paper companies take “old
corrugated containers” – better known as
cardboard boxes – and other wastepaper,
and use them to make such products as
brown paper towels, cardboard tubes, animal bedding, coffee filters and cellulose
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PHOTO: GARY ANDER SSON
Electrical
equipment of all kinds
can be recycled through
US electronics retailer
Best Buy.
Gary Anderson and his original design of
the recycling logo
variation
in efforts
“There is a huge international
trading market in recycled
raw materials.“
12APB4_tema_recycling_6907.indd 9
Recycling has come a long way since
1970, when graphic designer Gary
Anderson drew a Möbius strip with
three arrows, circling forever. While
that logo is now recognized around the
world, individual countries’ recycling
efforts vary widely.
A quick glimpse of some recycling
efforts across the globe:
Switzerland recycles 52 percent
of its municipal waste (mainly paper,
plastic, and metal), the highest in
Europe. Austria ranks a close
second.
The UK recycles only about 18
percent of its municipal trash (mainly
paper, plastic and metal).
Japan recycles more of its plastic
than any other country: 77 percent.
In the US, only about 7 percent
of plastic waste gets recycled. Most
of that is shipped to China, where it
gets turned into products like fabric,
carpets and plastic toys.
Singapore’s total recycling rate
increased by 117 percent between
2000 and 2011. The country recycles
nearly all of its construction debris
and more than half of its paper and
cardboard.
In Dubai, recycling efforts are
just beginning. Currently, some 90
percent of the country’s trash ends
up in landfills.
2012-12-03 15:19:02
FOCUS: RECYCLING
insulation. Researchers are even experimenting
with using compressed paper mixed with concrete
to form “papercrete” blocks, used to build affordable housing.
As for plastics, not many were being recycled
in Europe even 15 years ago, beyond Germany’s
Grüne Punkt (“Green Dot”) program for packaging materials. Now, says Grufman, the recycled
plastic industry has taken off, with “new and clever
techniques being developed all the time.”
In the past, used electronics were valued
mainly for the small amounts of valuable metals
they contained, including nickel and gold. Now
their plastic is also being reprocessed. In the EU,
the Waste Electrical and Electronic Equipment
Directive encourages manufacturers to mark the
types of plastics used in their electronic devices,
to make recycling easier.
A
NOTHER GLOBAL INITIATIVE involves pro-
ducer responsibility – persuading manufacturers to design their products with
recycling in mind. “If producers must
pay the cost of recycling their products
in an environmentally sound way, then they will
start making products that are more responsible,”
Grufman says.
Slowly but surely, companies are moving toward
taking back their own products for recycling.
PHOTO: FOLIO
Prices for used metal
have risen so high that
people are seeing cash
in trash.
Nike launched its global Reuse-A-Shoe program in 1990, and to date it has collected some
28 million shoes, turning them into rubbery pellets
used for sports surfaces. In 2005, the US outdoor
clothing company Patagonia started its Common
Threads program, taking back its own textiles
to be repurposed.
P ERHAPS MORE surprising is the ambi-
tious recycling program at Best Buy, the US
electronics retail giant. The stores began
collecting used devices from consumers
in 2009 – not just broken iPods, but nearly
anything electrical, from refrigerators to rice
cookers. The recycling service is free to consumers, and Best Buy makes a small profit on the
operation.
Despite recent advances in recycling, the BIR
believes trade barriers remain a problem. Copper, for one, is critical for electric motors, and the
earth’s crust does not contain vast amounts of it.
“We know there is a limited amount of copper,
and we should be very careful to keep whatever we
have in use,” Grufman says. Currently, less than
half of the world’s copper gets recycled.
“If we are to be successful in recycling more copper – to keep it being used again and again – then
we must have free and fair trade,” he says. “Copper
should be exported to the best recycler globally.”
Used outdoor clothing
takes on new life with
Patagonia’s Common
Threads program.
“If producers
must pay the cost of
re-cycling
their products, then
they will
make products that
are more
responsible.”
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FOCUS: RECYCLING
PHOTO: GETTY IMAGES
Products
reborn
Park benches from incontinence briefs.
Forest roads from sludge. Here are
a few examples of how SCA promotes
new uses for old materials.
Soon to
er s he
be anoth
et of pa
p er ?
text NANCY PICK
SWEDEN
SECURING THE
PAPER SUPPLY
SWEDEN’S paper recycling program
ranks among the world’s most successful. Back in 1994, the country passed
tough laws requiring paper producers to
pay for collecting and recycling of paper
products. The result: Sweden now recovers an incredible 95 percent of its newspapers, magazines and other printed
matter.
“For most Swedes, it comes very
naturally to sort paper and packaging,”
said Göran Nilsson, managing director
of Pressretur, the company that oversees
mandatory paper recycling across the
country. Pressretur is jointly owned by
three large Swedish paper manufacturers, including SCA.
“When paper companies were hit with
this legislation, we decided it was better
go in together,” he said. “From the beginning, we have been free to organize the
system the way we want.”
SCA SHAPE 4 2012 11
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FOCUS: RECYCLING
USA
GREENING COLLEGES
MANY COLLEGES in the Northeast US
want to go green, and now SCA in North
America can offer them something
attractive: closed-loop recycling. Under
this system, waste from a college gets collected, processed and then remade into
products that the college can use again.
SCA calls its initiative “The Power
of Three,” because it relies on three
companies joining forces—SCA, Casella
Waste Systems and Foley Distributing.
First, Casella collects and sorts all of a
college’s recyclable materials. Next, it
CANADA
FROM LEG
HOLES
TO PARK
BENCHES
TO MAKE ADULT
PHOTO: GALLERY STOCK
Pressretur is not a profit-making
venture, but rather costs the participating companies money. While
expensive, the system does bring
certain advantages. “We get a very
stable supply of recovered paper
for our mills, and we get very good
quality control,” said Nilsson. “The
paper we collect has a very low level
of impurities.”
The quality of recovered paper
can be a major problem in countries
like the US, where recyclables are
not always separated. As a result,
paper often gets contaminated by
pizza grease or other impurities.
To collect and sort paper, Pressretur contracts with large and small
waste management companies
throughout Sweden, operating
more than 5,000 recycling stations.
Although the Pressretur system
has been working smoothly for
years, the government has recently
been studying a plan to shift paper
recycling away from Pressretur
and into the hands of individual
communities. “We would no longer
be in control of the collection, cost
and quality,” said Nilsson. “For the
paper industry this would be bad
news, so we plan to fight it.”
sends the recovered paper to SCA’S plant
in South Glens Falls, New York, where
SCA turns the used paper into hand towels and tissue products. Finally, Foley
Distributing closes the loop, by delivering these recycled paper products back to
the college.
Not only does the Power of Three
reduce carbon emissions by keeping the
loop within a limited geographic area, but
it also helps colleges – or the clever students who attend them – to calculate their
carbon footprints.
Leg holes from incontinence briefs become benches.
incontinence briefs,
you need to punch out a
lot of leg holes. At SCA’s
Drummondville factory in Quebec, Canada, those U-shaped
plastic pieces do not go
to waste. The remnants, packaged into
300-kilogram bales,
are sent down the road
to another company.
Melted down, the
cut-outs become plastic
lumber and high-end
park benches.
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Oooops! Time to switch
to lights by TENA?
lights by TENA are specifically designed to absorb faster than ordinary liners.
So, if you’re like the 1 in 2 women who experience little leaks, you can still
get on with your day, while feeling fresher, drier and more confident.
For a free sample pack of the full lights by TENA range visit lightsbytena.co.uk
Download ‘my pff’ – our new pelvic floor fitness app
designed to help stop those oooops moments.
Available for iPhone and Android.
12APB4_tema_recycling_6907.indd 13
2012-12-03 15:20:50
focus: recycling
“He or
she does
not tell.”
Gunnar Johansson
on employees who
find money while
recycling paper.
All SCA tissue made
in North America is
made from recycled
material.
swedeN
Turning ash
inTo cash
there is money in paper recycling.
North AmericA
100% recycled Tissue
From towels to toilet tissue, the paper
products made by SCA in North America
are 100 percent recycled. But securing a
steady supply of the used paper needed
to make them—nearly 1 million tons per
year— isn’t easy.
“It’s cheaper to ship a ton of recycled
fiber from Los Angeles to Shanghai
(10,000 kilometers) than to ship it from
Los Angeles to our mill in Arizona (750
kilometers),” says Michael Jansen, vice
president for product planning and
logistics . “Containers that return to
China after delivering goods to the US are
empty so shipping costs from the US to
China are practically free. That’s a major
issue we’ve had to deal with.”
At the same time, the rise of electronic
communications means that the supply of high-quality recovered paper is
dwindling as demand is growing. “That
was the trend we saw 10 years ago,” Jansen says. “We knew that both availability
and fiber quality were going to worsen
over time, so we invested in our de-inking
facilities to give us greater flexibility.”
In addition to upgrading its US mills,
SCA signed long-term agreements with
waste collection companies close to its
facilities, guaranteeing a supply of material. SCA has also secured relationships
with printers who sell their high-grade
waste paper.
In the end, these efforts make a real
difference to SCA’s customers. “We have
secured supply sources to protect our
business over the next decade,” says
Jansen. “Many of our end users will only
buy recycled products, and we will be
there for them, for years to come.”
Literally.
“We produce tissue here in
Lilla Edet using recycled paper
that contains different impurities,”
said Gunnar Johansson, quality
and environmental manager at the
SCA mill in western Sweden. “We
screen out worn fibers, paper fillers, ink, metal staples, plastic, sand
and even tennis balls.” From time
to time, employees find another
item that does not dissolve in water:
paper money.
Once that has been pocketed,
sludge made from the less exciting
impurities gets burned in the mill’s
boiler—producing steam for drying
paper, heat for the plant and a modest amount of electricity.
The sludge-burning process
creates another by-product: more
than 25,000 tons of ash every year.
SCA has been thinking creatively
about turning that ash into valuable
products. So far, the company is
using it as:
W Construction material for forest
roads
W Binder in asphalt
W Deep soil stabilizer for roads
W Replacement for lime, used to
raise the pH of farm soil
As for the actual money, any
employee who finds a bill during
the screening process gets to
keep it. “He or she does not tell,”
Johansson says.
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12APB4_annons_6908.indd 15
2012-12-03 15:21:18
10 QUESTIONS
A question
of hormones
Have you ever thought of why you prefer
blue to red, or the scent of orange to
that of lavender? Professor Diana Derval
has. Before you’re born, she says, the
hormones you’re exposed to in the womb
determine your future preferences in
smells, shapes, textures and sounds.
And she knows how to turn her research
into hot marketing.
text ANNA MCQUEEN photo MALOU VAN BREEVOORT
W
hat made you want to
study science?
I was born in Paris
and grew up between
Paris and Munich. My
mother was a chess champion, so I think
that’s where I got my ability to think several moves ahead. My father was a painter
who did a lot of business in Germany, so
I think my observation skills are probably
down to him. I didn’t come from a wealthy
family so I went to work at 18, but I put
myself through school. I’m a great believer
in continuing education.
And what inspired your interest in
sensory science?
When I set up DervalResearch, our
fi rst client was Sara Lee’s Douwe Egberts
coffee division, which wanted to better
understand coffee drinkers’ preferences.
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SCA SHAPE 3 2012 17
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10 questions
“Female shoppers with a
testosterone-driven HQ
are more likely to prefer
fruity to floral scents.”
I began to wonder what makes some people love
coffee or tea, why some can only drink it with
sugar and others with milk. To me, these weren’t
simple preferences – they went further than that.
I’m like that annoying kid who just keeps asking
“Why?” and I never stop until I’m happy with the
answer.
What did you conclude?
I didn’t buy into the socio-demographics of
marketing. I felt there must be something else
determining our brand preferences, and I started
looking at variations in sensory perception. For
example, some people hear sounds four times
louder than others, some are six times more sensitive to textures, and nearsighted people prefer
short-waved colors like blue. Indeed, people with
myopia focus light in front of the retina, making it
effortless to view blue colors, whereas viewing red
requires more muscle effort. As a result, they see
blue as a more relaxing color, whereas farsighted
people are just the opposite. It became clear to
me that product preferences are directly linked
to the millions of sensors monitoring our bodies
and brains.
How can this be used to help marketers?
Studies have shown that the number and distribution of these sensors is governed to a great
extent by the prenatal hormones to which we are
exposed in the womb. So we carried out our own
research with 3,500 people in 25 different countries, and we identified eight gender polymorphisms in humans that are defined from birth
– the Hormonal Quotient, or HQ. We established
that the people in these categories share similar
preferences in terms of colors, tastes, shapes,
textures, scents and sounds. This provides a valuable segmentation tool to help marketers predict
consumer preferences based on sensory perception that is far more effective than basing their
segmentations on income, sex or age.
Besides hormone research and marketing Diana Derval is into martial arts.
Diana Derval
Age: 40.
Lives: In Amsterdam,
the Netherlands and
Chicago, US.
Family: Married to Johan
Bremer, co-author of Hormones,
Talent, and Career: Unlock
your Hormonal Quotient, and
co-inventor of the Hormonal
Quotient Wheel.
Job: President, Research
Director at DervalResearch.
Education: BS in engineering,
BA in literature, MS in marketing, MBA, working on a PhD
(“The Influence of Hormones on
Product Preferences”).
Hobbies: Playing bass guitar,
practicing martial arts, reality
TV shows, observing people.
Secret talent: “My plan B was
stand-up comedian.”
Want to know your HQ? See
www.derval-research.com
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SOFT ENOUGH
FOR YOU?
When SCA decided to apply the
DervalReseach approach to consumer tissue, it carried out a proof
of concept test in a Scandinavian
supermarket. The highly competitive Nordic market is a tough one for
tissue products, and DervalResearch
wanted to demonstrate how products
could be adapted to physiological
preferences. The research group created a new tissue product to target
a particular Hormonal Quotient (HQ)
category and presented it for sale on
the shelf. Once people had bought
the product, they were invited to test
their HQ and provide feedback about
the product.
The results were clear. “With three
or four products, SCA can address
the whole Nordic tissue market and
meet the different expectations of
each HQ segment,” Derval says.
“In this instance we targeted one
category, and in-store sales tripled.
Along with the positive feedback we
got from in-home testing, we proved
that we can design a consistent packaging and product to appeal to a specific category and people will choose
that product and stick to it.”
So what does the HQ test involve?
The test is available online and takes into
account a range of information including gender,
ethnicity, age and biological markers. It provides
information about your personality, sensory traits
and leadership style.
Can you give us some examples?
We recently collaborated with the motorcycle
maker Harley-Davidson and found that all their
female clients were highly influenced by prenatal
testosterone. Other tests have shown that female
shoppers with a testosterone-driven HQ are more
likely to prefer fruity to floral scents. Information
like this is invaluable for fragrance retailers – or
men who are looking for that perfect gift.
What were some of your most fascinating
discoveries?
Finding that many of the differences in our
behavior stem from something beyond our control
was very important. Realizing that someone’s
inability to cope with their crying baby could be
due to their increased sensitivity to that audio
frequency can really help people not feel guilty
for their “failings” and focus on their strengths.
Another major discovery was when we established
why nearsighted people prefer blue and farsighted
prefer red. Prior to that, all color-based marketing had been based on a foolish idea of colors
being perceived as “warm” or “cold,” whereas in
fact the preferences we have as consumers are
purely physiological.
Diana’s book.
TIPS FOR
MARKETERS
$ Price, culture and
emotion are never the
real reasons behind a
purchasing decision.
$ You cannot create
needs, but you
can spot them and
analyze them on a
physiological level.
$ Observing is better
than asking.
$ People are unique,
but those with the
same HQ share
preferences and
behavior.
$ Never do anything
that doesn’t have a direct impact on sales.
What has brought you the most satisfaction?
My research led me to establish the Better
Immune System Foundation in 2009, for research
into chronic diseases. Many chronic symptoms
such as eczema, asthma and sinusitis seem
related to our immune system. The foundation’s
mission is to conduct research, information and
prevention programs for a better immune system,
and I’m very proud of the work we do for the
greater good.
You are not only a scientist but also a
businesswoman?
Well, yes, in 2008 we were named by
L’Entreprise magazine as Smart Business Idea of
the Year, which was a wonderful accolade. Also,
one of my books, The Right Sensory Mix, was
nominated as a fi nalist for the best marketing book of 2011 by the American Marketing
Association. It was the fi rst scientific book
to gain such a distinction, so that was a very
proud moment.
What is your ultimate goal?
My personal goal is to make a major contribution to the field of health and well-being. We have
succeeded in helping businesses and consumers through our groundbreaking fi ndings, but it
would be a waste not to use our research skills
for the greater good. A Nobel Prize would be the
ultimate achievement, but why not? We’ve already
made so many advances with little funding that
I see no point in not aiming for the very top.
SCA SHAPE 4 2012 19
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MARKET
Hands-on
marketing
We’ve all heard how the Internet
was supposed to make print
advertising obsolete. But while
marketers chase the latest digital
channel or social network, they
shouldn’t forget the time-tested
approach of direct mail. It’s often
the best way to reach customers
in a cost-effective, targeted and
measurable fashion.
text ANNA MCQUEEN
D IRECT MAIL MARKETING, when carefully
managed, outperforms many alternatives, industry experts say. “A catalog
or a direct mail piece in their mailbox
is an intrusive tap on the shoulder that
online-only activities don’t allow,” says
Lois Brayfield, president of J. Schmid & Associates, a US catalog consultancy based in suburban
Kansas City. Moreover, the tactile nature of direct
mail is very appealing to consumers. “You can feel
a mail piece in your hands,” she says. “You can
hear an envelope or tab tear open. You can see the
images and key messages on the printed page. You
might even be able to smell it.”
A 2010 study in Sweden showed that young
people there trusted printed media more than the
Internet. The survey of more than 1,000 Swedes
by United Minds found that 70 percent said they
received interesting offers through direct mail
that helped them shop better, and 53 percent
agreed that direct mail is relevant and supplies
new information.
20 SCA SHAPE 4 2012
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thick and light
SCA has just started producing a new
paper grade called GraphoInvent at Ortviken,
SCA’s largest paper mill in Sundsvall, some
250 miles (400 kilometers) north of Stockholm.
GraphoInvent has qualities that make it
highly suitable for direct mail. Its combination
of high thickness and low grammage make it
cost-effective in terms of both material and
distribution costs. GraphoInvent also has a
low carbon footprint compared with other
papers produced in Europe.
SCA has invested 350 million Swedish
kronor (EUR 40 million) in the Ortviken mill to
produce GraphoInvent.
Read more: www.graphoinvent.com
With a careful strategy
and a targeted message,
direct mail can be one
of the most effective ways
to reach consumers.
“There are a lot of myths surrounding the direct
mail market, and a common one is that direct mail
‘door drops’ go unread,” says Lars Lindgren, SCA
vice president for business development, publication papers. “Surveys like this show this not to be
the case. Direct mail also makes it easier to target
a specific audience and tailor your message. All
this can be done on as small a scale as you like, so
it is of particular interest to smaller businesses or
those just starting out.”
Moreover, it is much easier to measure return on
i l l u s t r a t i o n : i d - w o r k /g e t t y i m a g e s
“There is something magical
about seeing your
name in print.”
investment (ROI) through a direct mail campaign.
The Annual Media Usage Forecast from Target Marketing Magazine in 2011 concluded that
direct mail delivers the strongest ROI for customer
acquisition for business-to-consumer marketers,
and that it also ranked highest for customer retention and contact.
The potential for personalization – incorporating each person’s name into the advertising material they receive – also makes direct mail effective.
“There is something magical about seeing your
name in print,” Brayfield says. “There was a time
when personalization was so expensive that it
could cripple your ROI. But today’s technology
has made print personalization easier and more
affordable.”
With a carefully honed approach and a targeted,
relevant, appealing message, direct mail is
clearly still a great way to reach consumers and
expand business.
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Feature
xxxxxxxx
Bladder weakness
– not just an old person’s problem
Nearly 10 percent of all teenagers and young women suffer from bladder problems.
even if the risk of leakage rises with increasing age, incontinence is a hidden problem
that affects women – and men – at any time of life. text susanna lindgren
M
ost of us know that the risk
of suffering from incontinence
increases with age. We know
for example that as many as
70 percent of residents of
nursing homes in Britain, Germany and
Sweden are incontinent. What seems to
be less known is that leakage is a condition that affects people at any age of life
situation.
“People of all ages may suffer – children,
teenagers, young women,” says Ian
Milsom, a professor in the department
of obstetrics and gynecology at the
Sahlgrenska Academy, the faculty of
health sciences at Sweden’s Gothenburg
University. “In the developed world,
about 10 percent of all women aged 30 to
40 have problems with urinary leakage.
In the age group of 50 to 60 years, that
figure rises to 20 percent.”
For children and teenagers, incontinence can become a stigma that affects
their schooling.
The problem can be caused by bad
habits in early years, such as when a
22 sca Shape 4 2012
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MARKET
10
percent
of all teenagers and
young women suffer
from bladder problems.
“If you don’t learn
to void your
bladder properly
in childhood,
this can lead
to problems in
adulthood.”
PHOTO: FOLIO
school child holds herself rather than
visits the school toilet.
“If you don’t learn to void your bladder properly in childhood, this can lead
to problems in adulthood,” says Daniela
Marschall-Kehrel, a medical doctor and
head of a urological office in Frankfurt.
She says the two most common coping
strategies for bladder problems, used by
children and adults alike, actually can
have a reverse effect.
“Holding maneuvers are no solution
for an overactive bladder, as that makes
the bladder less flexible and less able to
store more urine,” she says. “Less fluid
intake isn’t a solution either, as it makes
the urine more concentrated and triggers the bladder’s nerve system to empty
more frequently.
“Many who have problems in adulthood often suffered as children. The
problem is that this isn’t a pleasant topic
to discuss. We can talk about heart disease or asthma, but discussing the urinary system is still very taboo, especially
in our part of the world.”
Incontinence can generally be divided
Daniela Marschall-Kehrel
into three different types: stress incontinence, urge incontinence and a mixture of the two. If the urinary leakage is
caused by sneezing, coughing, laughing
or physical activity that puts pressure on
the bladder, then it is generally diagnosed as stress incontinence. This can be
caused by physical changes to the body,
such as childbirth or a weakening of the
squeezing muscles. Urge incontinence
is caused by inappropriate bladder contractions, and the most common sign is
leakage after suddenly feeling the urge to
urinate. One reason can be damage to the
nerves of the bladder.
“Stress incontinence can be treated
by strengthening the pelvic floor muscle
through squeezing exercises,” Milsom
says. “There has also been a revolution
in surgical treatment, and leakage can
today be prevented through a simple
operation, which can be done under local
anaesthetic, by fitting a synthetic tape
around the urethra.”
Medication is also an option, for
stress incontinence as well as for urge
incontinence.
LIGHTS IN
THE TUNNEL
Light bladder weakness is much more
common than people are aware of.
Still, 70 percent of women having
occasional little leaks are using products that weren’t specifically designed
to deal with the problem. Instead they
use regular sanitary protection – feminine towels and pantyliners. This is
simply because they do not see what
they have as incontinence, but rather
as “little leaks” now and then.
For these women SCA has created
the lights by TENA range, which is just
like the normal feminine protection
these women know, only better for the
purpose. Lights by TENA is a small
range of discreet pantyliners that
absorb quicker, for a drier and fresher
feeling. The lights by TENA range was
introduced in the UK in 2011.
“We’re already seeing very positive
results of the launch, which shows
that we have found a way to express
TENA that also attracts this target
group,” says Meta Ågren, global brand
director, SCA. “We want our consumers to feel that little leaks are not an
age thing, and it is not such a big deal
either. With lights by TENA we hope
our consumers will feel liberated to
carry on with life, with products that fit
their self image.”
Lights for light
incontinence.
SCA SHAPE 4 2012 23
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At Velvet we are committed to caring.
For every tree we use we replant three.
Try our New luxuriously soft Velvet Almond Milk
with its enriched swirls of softness, indulging
you with that extra touch of luxury.
velvettissue.com
12APB4_annons_6910.indd 24
Velvet. Luxury for you, trees for the planet.
2012-12-03 15:26:01
TECHNOLOGY
CUTTING
EDGE
It’s not only size that
matters. The number
of saw teeth in relation
to rotation speed
decide the efficiency
of the saw.
technology
The thinner the saw blade, the better the yield.
Every reduction in the width of a blade that cuts
through Nordic pine at Bollsta Sawmill translates
to big gains, both in revenue and for the forests.
text SUSANNA LINDGREN photo PER-ANDERS SJÖQUIST
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TECHNOLOGY
F OR KATARINA LEVIN, the manager of Bollsta
Sawmill in Bollstabruk, Sweden, the equation is simple. It’s essential to get the most
out of a pine tree that might have taken more
than 100 years to get to its present size. If using thinner saw blades yields more timber and less
sawdust, this is definitely the way to go.
“The aim is to maximize value from the raw
material, as the value of sawn timber is four to five
times the value of by-products,” Levin says.
Bollsta Sawmill, one of SCA’S seven sawmills
in Sweden, is located in the county of Västernorrland, some 500 kilometers north of Stockholm.
As with any other sawmill, the highest cost for the
mill is the purchase of raw material. What started
as brainstorming at an improvement meeting a
few years ago has now resulted in a carefully calculated sawing process in which the diameter and
condition of the timber decides the size of the saw
blade to achieve the most efficient results.
“Using thinner saw blades has been important
in achieving better yield,” says Daniel Medelberg.
As a saw doctor at Bollsta with responsibility for
the cutting tools, Medelberg has been deeply
involved in developing new techniques. “We have
increased the yield from about 43 percent to nearly
50 percent, which means that an additional 7 percent of the log becomes solid wood products.”
N O RAW MATERIAL BROUGHT to the sawmill is wasted. What is removed to create
square boards becomes cellulose chips
used for pulp, or sawdust for fuel pellets.
Nearly half of an average log still ends up
as chips and sawdust, but the increase in the yield
of sawn timber from a log reduces the amount of
sawdust significantly. When it comes to getting as
much as possible out of every log, even increases
of tenths of a percent make a difference that can
amount to hundreds of thousands of euros, since
about 5.2 million logs pass through the milling process each year.
Just six years ago, all timber at Bollsta was cut
with standard 4.8-millimeter-thick saw blades.
Today 99.7 percent of the timber is cut with thinner blades – 3.8 millimeters on average. The smallest logs, with diameters of 13 to 18 centimeters, are
cut with blades as thin as 3.2 millimeters. Only the
largest and hardest logs, such as a 43-centimeterwide rootstock, require the thickest blades.
“Saw doctor” Daniel
Medelberg has developed
techniques that increased
the yield at Bollsta.
26 SCA SHAPE 4 2012
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“We have increased the yield from about
43 percent to nearly 50 percent, which
means that an additional 7 percent of the
log becomes solid wood products.”
SLIMMING THE BLADES
7%
99.7percent of the timber is cut with thinner blades – 3.8 millimeters on average.
The smallest logs, with diameters
of 13 to 18 centimeters, are cut with
blades as thin as 3.2 millimeters.
Six years ago all timber
was cut with 4.8-millimeter-thick saw blades.
“To guarantee a high-quality end
product, you have to know how to
optimize the choice of saw blades in
relation to type of timber, feed rate
and season,” says Peter Höglund, a team
leader at the sawmill.
T HE WEAR ON SAW BLADES has been care-
fully examined under a microscope. By
testing different variables, such as the
number of saw teeth in relation to rotation
speed, the team has been able to secure a
high production volume. According to Lars Trell,
assistant product manager at Bollsta, teamwork
has also been essential for a successful result.
“Everyone must be involved and know when
and why to change the saw blades,” Trell says. “It’s
important that the operators feel confident using
the thinner blades in tough production circumstances without losing productivity. The teamwork
also includes the effort and skills at our toolsharpening contractor, Sollefteå Slipservice AB.”
Bollsta uses two types of saws, a Linck CSMK
and a Linck MKV, which can be fitted with three
to seven blades depending on the diameter of
the log. To get a smooth operation and to make it
Today an additional
7 percent of the log
becomes solid wood
products.
easier to change blades between differently sized
batches of logs, some special solutions have been
created on site.
“In one saw we have introduced a whole new
way of mounting the saw blades,” Medelberg says.
“The result is a custom-made saw blade tube.”
Levin points out that this is an invention of
the sawmill’s own personnel. “Our skilled and
engaged co-workers are the most important factor
when improving the process,” she says.
The blade producers AKE and Kanefusa have
also been involved in the process.
“As they are experts in metallurgy and we are
experts in sawing, we have met in the actual manufacturing process to achieve the best results,”
Trell says.
Work to decrease saw blade thickness is also
going on at SCA’s other sawmills. Representatives
from the different sawmills within SCA Timber
meet regularly in a forum to exchange experiences
and share new ideas. At Bollsta, a special project
group works continuously to further increase the
yields, as every percentage point has a big impact.
“Both financially and for the environment, it is
essential that we use the raw material our forests
provide in the best possible way,” Levin says.
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SHAPE UP
Photos GETTYIMAGES, SHUTTERSTOCK
Pavilion for cycling enthusiasts
THE CLASSICAL pagoda temple is the inspiration for NL Architects of Amsterdam
in designing the China Bicycle Club pavilion in China’s southern province of Hainan.
The base of the roof and ceiling are made
The box is filled with baby
clothes and necessities worth
about 300 euros.
of plywood. For the track surface, the
architects are looking at alternative wood
materials that can withstand the tropical
weather conditions of Hainan. Completion
of the stadium is planned for late 2014.
30
PERCENT of Japanese are 60 or older.
That makes Japan the country with the
oldest population in the world.
Source: www.globalis.se
Mommy box for Finnish newborns
MOTHERS OF ALL newborns in
Finland have a chance to receive a
“motherhood package” containing
baby clothes and other necessities.
The box contains a mattress and can
function as a bed during the first few
weeks of the baby’s life, and some of
the garments, such as mittens, are
made of recycled fiber.
Beginning this fall, these mommy
boxes have a new design. Johanna
Öst Häggblom, who studies industrial
design at Aalto University in Finland,
won the design competition, part of
the celebrations for World Design
Capital Helsinki 2012.
Pregnant women can choose
between the motherhood package
and financial aid of 140 euros. The
majority of first-time mothers choose
the package, which is valued at about
three times the amount of financial
aid. Some 60,000 motherhood packages are distributed each year.
28 SCA SHAPE 4 2012
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SLUDGE MADE INTO CARDBOARD
THE SLUDGE produced in the manufacture of spe-
cial cellulose contains what are called nanofibers.
Scientists at Luleå University of Technology have
found that recycling this sludge can make it easier
to produce cheaper and more environmentally
sound paper and packaging products. The production consumes less energy and the fibers do
not need to be chemically pre-treated before the
production of cellulose nanofibers.
Too late to
save the earth?
HOW SICK IS THE EARTH? Is it too late to try to do
something about global environmental problems? If
not, what can we do? Environmental scientist Johan
Rockström, together with the nature photographer
Mattias Klum, has published the book The Human
Quest, which compiles the latest research results.
Read the interview with Johan Rockström in the next
issue of Shape, to be published in March.
Link: http://thehumanquest.org
Don’t worry. The actual
size of the bark beetle is
4-5 millimeters.
Bark
beetles spread
rot fungus
Trapped.
Ancient prey
recaptured
A 100-MILLION-YEAR-OLD
spider has been found by
American researchers in
Southeast Asia. The spider
was caught in resin the very
moment it had caught a wasp.
The discovery was made in
amber in Myanmar.
Extra protection
THIS CASE is recommended
for anyone who wants extra
protection for an iPad. The
protective case, looking like a
feminine towel, is called iMaxi
and can be bought for USD
30 at etsy.com. We think it is
especially good at absorbing
spilled coffee.
SPORES FROM ROT FUNGUS, such as bracket
fungus on spruce trees, are disseminated by
bark beetles that live in the wood. That was the
finding of a new doctoral dissertation from the
Swedish University of Agricultural Sciences.
The spread is facilitated by the spores
riding along with bark beetles and other
insects that burrow under the bark of
spruce and pine trees.
SCA SHAPE 4 2012 29
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2012-12-04 12:51:34
1
2
12 HOURS
with Angela Martinez
Angela Martinez is a product developer for SCA in
Ecatepec, Mexico. Angela and her team are experts
at converting SCA’s designs for sanitary napkins
into sassy products that will catch the eyes of women
in Mexico and Central America.
text ELIZABETH LOVE photo KEITH DANNEMILLER
Follow an SCA employee during a day at work
She kisses her husband
goodbye and takes the
subway, a collective taxi
and a cab to the SCA plant in
Ecatepec, Mexico. Picture 1.
7:30 am
She checks her emails and
talks to colleagues on the
phone.
8:20 am
IF THERE’S ONE THING SCA product developer
Angela Martinez knows about women in Mexico
and Central America, it’s that they dislike plainlooking sanitary napkins, effective as they may be.
Tweaking the designs of sanitary pads to include
fun and feminine motifs is one of SCA’s weapons
in the battle for market share in the region. The
challenge for Martinez is to continue the constant
innovations to the successful Saba brand.
“Women here and in Central America are
A meeting with an SCA team
from Sweden to discuss
products aimed at markets in
Mexico and Central America.
Picture 2.
She visits the plant to check
on pending repairs to a
machine, then rejoins the
morning meeting. Picture 3.
9:15 am
10:45 am
Lunch in the cafeteria.
She translates the menu
for visiting colleagues and
eats charro bean soup, rice
and salad with coworkers.
Picture 4.
12:30 pm
30 SCA SHAPE 4 2012
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4
5
Angela
Martinez
3
always looking for something new,” Martinez says.
“They’re more exuberant than women in Europe.
They like their sanitary napkins with flowers or
petal designs and eye-catching packaging.” Products aimed at adolescents come in bright green
packaging with stars, smiley faces and the words
“love” and “peace.” They also include free gift
bags, pencil cases and overnight kits featuring the
iconic cartoon characters of “Hello Kitty.”
Martinez has been working with SCA’s Saba
team in Mexico for three years, initially as a lab
engineer. In 2011 she was promoted to product
developer, the only one for Saba products at SCA’s
plant in Ecatepec, on the outskirts of Mexico City.
Meeting reconvenes with the
visiting SCA team.
She visits the lab, where she
compares materials for use in
feminine products. Picture 5.
1 pm
4 pm
Age: 29
Title: Product developer
Lives: Mexico City
Family: Husband, Luis
Estrada, and a gray cat
named Cheto
Interests: Swimming, science fiction,
Baroque and Gothic
architecture
Favorite food: Pasta
and cheese
Favorite book: Contact, by Carl Sagan
6
The job involves constant vigilance and creativity.
It can take from two to six months for an innovation to get final approval and enter production.
On any given day, Martinez can be found fielding phone calls, visiting the factory, attending
meetings and using the lab. Because materials in
Mexico are different from those in other markets,
the process of identifying the best ingredients and
suppliers for a given line goes on constantly. Some
lines exist only in Mexico and Central America,
such as “natural” sanitary napkins that include
extracts of chamomile and aloe.
“You have to constantly be on the lookout for
ways to gain market share,” Martinez says. “If you
remain static, you die.”
Manager Martha Gomez
presents her with a plaque
marking her three-year
anniversary with SCA.
4:45 pm
She returns to the office,
answers emails and prepares
technical files and product
specifications. Picture 6.
5 pm
She heads home for a little
more paperwork to prepare
for the next day.
7:30 pm
sca Shape 4 2012 31
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market
Fad brands start
to fade in an economic
downturn, but strong
brands may find
opportunity there.
text TheTa Pavis
photo geTTy images
Brands
that stay strong
in weak times
tough economic times make consumers
cautious. But while savvy shoppers may be
looking for bargains, they’re also looking
for brands they can trust.
R
ecessions make us hold on
tighter to our wallets – that’s
not a secret. But an economic
downturn can be an opportunity
for strong brands to leave their
competitors in the dust.
Kelley Skoloda, director of the Global
Brand Marketing Practice for international PR firm Ketchum, says that in a
recession, brands – like consumers – want
to spend less, including on marketing.
“But it’s a perfect opportunity to spend
maybe more than their competitors,”
she says, noting that this could be a
way to gain the advantage. “Fad brands
start to fade in a downturn,” she says.
Skoloda points to Nike, which pressed
forward on its spending in the past and
then, when the economy bounced back,
was able to rise above the competition.
During the run-up to the Iraq war
in 2003, the advertising firm J. Walter
Thompson (JWT) began what it calls
the AnxietyIndex, a measurement of
“consumer anxiety.” The companies that
do the best, it found, are the ones that
can acknowledge the crisis but stay true
to their brand at the same time. Some
brands even position themselves as part
of the solution.
Hyundai, for example, offered customers the Assurance Plan. Buy a car and
lose your job within five years? You can
return it. Others borrowed the concept,
such as Telefonica in Spain, which offered
to cut phone bills in half for people who
lost their jobs. When the economy started
to slide in Australia, the Woolworths
supermarket chain announced new store
openings and expansions at existing sites
that would result in 7,000 new jobs. JWT
says the company’s ads, which included
showing a mom going to a job interview
with her small son, “showed pragmatic
optimism.” In 2010, Miller High Life gave
four free television spots to small businesses during the Super Bowl football
championship.
“These days, the reputation of a company needs to be even stronger than the
brand,” says Karen Post, a branding
expert and author of the new book Brand
Turnaround.
an american brand that has done this
well, according to Post, is the Ford Motor
Company. “They were on the edge of
32 sca Shape 4 2012
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SCA to
double
AwAreneSS
death,” she says. “Two of the Big Three
[automakers] took bailouts and they did
not. They brought in a CEO from outside
the industry, who drove a Lexus! His
appreciation of the value of the brand
was a big part of their turnaround. They
got rid of some deadweight [models] that
weren’t viable.”
Post says business leaders need to
embrace the fact that consumers are
looking at the whole picture of what
companies stand for. “In the past couple
of decades the meaning of brands for customers has really changed. There’s their
name, their logo – but now it is the totality
of what an organization does.”
Amy Marks-McGee, a trend and marketing expert who leads “trend excursions” in New York City, agrees. She says
“The reputation
of a company needs
to be even stronger
than the brand.”
customers are more aware now of what
companies are doing, where they manufacture and what charitable activities
they may support.
The brands that are succeeding aren’t
necessarily recession-proof, MarksMcGee says. They just don’t lose sight of
who they are. “They don’t skimp and they
don’t change. They don’t pull back, they
work smarter. The most successful stay
true to their brand. They may use Facebook, but the message is the same.”
One Of SCA’s goals through
2017 is to double brand awareness in selected key markets.
An important part of this work
consists of SCA’s participation in the Volvo Ocean Race in
2014-2015, with the company
running an all-female crew.
“We want more people to
see how we make a difference for people and nature
around the world and that SCA
is behind successful product
brands such as TenA, Tork,
Libresse and Libero,” says
frida Ohlander, communications director, Corporate
Branding.
“We will demonstrate our
breadth as a global hygiene
and forest product company
through a variety of activities,”
she says. “no one will be able
to escape the fact that innovation and sustainability are SCA
cornerstones.”
Another key activity is SCA’s
global brand ambassador
program, which is aimed at
employees.
“Through our ambassador program, we are raising
knowledge about SCA among
our employees so that we can
convey an integrated picture
externally,” Ohlander says.
“The target is 37,000 proud,
active brand ambassadors.”
Frida Ohlander
Read more about the Volvo
Ocean Race on the next page.
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SCA IN THE volvo oCEAN rACE
Skipper
without fear
S t e p h e n M u n d a y/g e t t y i M a g e S
Recruitment of the all-female crew for
Team SCA in the Volvo Ocean Race is
in full swing. Christine Salén-Guillou,
skipper in the 1997 contest, knows that
while many may feel they are called,
only a few can meet the challenge.
text AnnA Gullers
I
T iS bOTh fRiGhTeninG and fascinating to
hear Christine Salén-Guillou talk about her
experience as a skipper in the Volvo Ocean
Race, the world’s most demanding offshore
sailing competition. It quickly becomes clear that
knowing how to cross the Atlantic or bring home an
Olympic medal in sailing is by no means enough.
“The project is an enormous commitment that
takes several years of your life,” she says. “Forget
your family and your friends – the crew becomes the
foundation of your life. You train to become a sailing machine.”
In 1997 –98 she was the skipper of the boat EF Education, with an all-female crew. In two years there
will be another “female boat” crossing the starting
line for a round-the-world voyage, this time without
Christine: Team SCA.
The Volvo Ocean Race is an enormously challenging sailing contest that places extreme
demands on the personal qualities of its participants. A large part of the adventure consists of
testing one’s limits and in that way learning about
oneself and one’s surroundings. Confined on board,
12 people with different personalities and from different cultures live alongside one another during
the various legs of the race, all in a setting that offers
only bunk beds to sleep in.
Is it like Big Brother at sea?
“Big Brother is a cozy program by comparison.
On board you’re always tired, always wet and cold.
You’re in a very limited space 24/7 and it’s never
quiet. And after 25 or 30 days at sea without a shower
and clean clothes, the smell is horrible.”
The crew must keep its luggage to a minimum
SCA AlreAdy A winner
When Volvo Ocean Race is launched in
2014, sca enters with a team – an
all-female crew for the first time in the
competition for 15 years. That provides
sca with an especially great opportunity
to attract attention and send out its
messages, says christine salén-Guillou.
Christine
Salén-Guillou
Age: 48
Family: Married with
one son, age 9
Sailing background:
Mainly offshore sailing in
solo (Figaro Race), double
(AG2R, Twostar) and full
crew (Round Europe Races,
Whitbread)
In the pipeline: Sailing
around the world with her
family, starting in the middle
of November.
“In some sense, sca’s boat is
already a winner,” she says. “an allfemale crew attracts a large audience,
gets amazing support in the harbors
they call at, and brings more people
to the event.”
to save on weight. Books, music players and other
amusements are left on shore.
“When you tack (change direction), all the luggage must quickly be moved so that the weight is
on the windward side. So the luggage consists of
clothes and a toothbrush. Some crews even share a
toothbrush. Every gram counts.”
Can a female crew take home the VOR prize?
“Realistically, I have to say no. Sailing is too much
a pure strength sport. The conditions in the Southern Ocean are exceptional. It’s hard to push the
boat at the high speeds of the waves and the wind
there. Nor are there as many experienced women
as men to choose from to put together a crew. At the
same time, it’s a victory just to take part with an allfemale crew.”
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economy
hot
Sustainable investment is
Sustainable investment continues to increase in Europe.
Best-in-class strategy is one trend that is growing
rapidly. This makes it vital to achieve high ratings in key
sustainability indexes, as SCA has done.
text Göran Lind photo shutterstock
T
he growth of sustainable and
responsible investment (SRI)
in Europe continues to outpace
the overall market, according
to a study by Eurosif, the European
Sustainable Investment Forum. The
fastest-growing strategy is norms-based
screening, which involves evaluating
investments based on international
norms such as the UN Global Compact
and the OECD Guidelines for
Multinational Enterprises. This strategy
has risen from 1 billion euros in managed
assets in Europe in 2009 to more than
2.3 billion euros in 2011, a 137 percent
increase.
Institutional investors in particular
are attaching increased importance to
sustainability and responsibility issues.
Retail investors are not switching to SRI to
the same extent, according to the Eurosif
study. In Sweden, where a large share of
SCA’s shareholders are located, normsbased screening is a long-established
strategy, as in the other Nordic countries.
“Over the past 10 years we’ve seen
a shift from excluding companies and
enterprises to being a more active investor
making increased use of strategies such
as best-in-class (investing in companies
that are the most sustainable) and normsbased screening,” says Henrik Malmsten,
chairman of Swesif, the Swedish equivalent of Eurosif.
He attributes the increased interest in
SRI to the greater importance of these
issues in general in society, and to asset
managers, such as banks’ investment
funds, seeing SRI as an important competitive device.
“We also have a much broader perspective today,” Malmsten says. “Previously the
focus was almost entirely on the environment and energy. Today it’s about everything from ethics and corruption to how
banks run their operations.” Malmsten says
he expects SRI to be more integrated in all
investment decisions in the future.
Integrated SRI is already the second
most common investment strategy,
after exclusion of certain companies and
sectors. Investments based on a best-inclass strategy increased 46 percent from
2009 to 2011.
SCA in prESTigiouS SuSTAinABiliTy indExES
In 2012, SCA wAS InCluded once
again in the Dow Jones Sustainability
Europe Index, one of the world’s most
prestigious sustainability indexes. SCA
has been included in this index five times
in the past eight years. SCA has also
achieved high ratings in a number of
other sustainability rankings and indexes.
These include MSCI World ESG Index, a
global equity index comprising companies
with high sustainability ratings relative to
companies in their sector. Also in 2012,
SCA was designated one of the World’s
Most Ethical Companies by the American
organization Ethisphere. SCA is included in
the global sustainability index FTSE4Good
where SCA is rated as a Supersector
Leader.
SCA Shape 4 2012 35
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Power from
SCA’s land
text MATS WIGARDT photo TORBJÖRN BERGKVIST
SCA is well on its way to becoming a major producer
of renewable electricity. A number of wind turbines
have already been installed, and another 350 or
so will be erected by 2017.
SCA land in the rolling
forest landscape of northern
Sweden – an ideal setup for
wind power ventures.
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OUTLOOK
FEWER TURBINES,
SAME POWER
W SCA’s and Statkraft’s plans include seven
wind parks with a total of 360 turbines. The
effort represents the largest wind power project in Sweden to date, with a total electricity
production of 3.0 TWh a year.
W As part of the SCA/Statkraft initiative, an
investment decision was recently made
by Statkraft for the Ögonfägnaden and
Björkhöjden wind parks, with a total of 123
wind turbines, which will be completed in
2015. The investment: 6 billion Swedish
kronor (about 900 million dollars). Annual
production from the two wind parks could
heat up to 220,000 single-family houses.
W SCA and the Norwegian company Fred.
Olsen Renewables have submitted an
application to build 180 wind turbines in
the municipality of Sollefteå, under the joint
venture FORSCA AB.
W SCA has also started an initiative to develop
two wind farms on its own, with a potential
1.2 TWh generating capacity. SCA may invite
partners at a later stage or carry through the
projects on its own.
W One of SCA’s sustainability targets includes
increasing the production of wind power on
SCA land to 5 TWh per year by 2020.
SCA SHAPE 3 2012 37
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Workers prepare the
blades for lifting on
tower number 5.
A blade for a wind power tower is transported through the village of Sidensjö in Ångermanland, Sweden.
O
n an elevated plateau in northern
Sweden, white towers 377 feet (115
meters) high with rotors spanning a
circle 370 feet (113 meters) in diameter
rise above the forested horizon of the
Stamåsen ridge northwest of Ramsele. Five wind
turbines are in place so far, with another 21 still to
be built.
Once all 26 turbines are completed in fall 2012, it
is estimated that total electricity production at the
Stamåsen wind park will meet the needs of close
to 10,000 single-family houses. And that’s just the
beginning.
At the Mörttjärnberget wind park, work is under
way to build 37 wind turbines. Other wind parks,
with names like Ögonfägnaden, Björkhöjden,
Björkvattnet, Raftsjöhöjden and Bodhögarna,
await completion on SCA land in the rolling forest
landscape of northern Sweden.
The adventure started five years ago. Before
that, SCA had leased suitable sites for the
installation of about 100 wind turbines for other
players.
“But we realized there was value investing in
wind power that we could capitalize on ourselves,”
says Åke Westberg, head of SCA Energy, which
since January 2011 has brought together SCA’s
renewable energy operations under one roof.
Together with the Norwegian energy company
Statkraft, SCA formed Statkraft SCA Vind AB.
Statkraft provides financing while SCA grants
land for the wind power farms. SCA will submit an
application later this year to build a further 200 or
so wind turbines on its own. Investments of this
magnitude naturally are of great significance for
the sparsely populated areas of Sweden where
the turbines are being built. Along with the
construction of new roads and reinforcement of
old ones to withstand heavy, bulky shipments of
turbines and blades, the installations will provide
many local jobs, both during the construction
phase and when the wind power stations are up
and running.
He also notes that the investment in wind power
provides considerable value to the SCA brand,
reflecting growing interest in renewable energy.
Developing new business opportunities for longterm sustainable energy sources, such as biofuels
and wind power, is also clearly in line with SCA’s
business strategy and sustainability targets.
Wind power is quite simply right for the times,
from a global perspective as well. Wind power has
no emissions and is the renewable energy source
with the greatest growth rate in the world.
Wind power production is expected to triple
by 2020 in the European Union, and it is also
increasing sharply in the rest of the world. In
China, wind power has doubled every year in the
latest five-year period. And in Canada, the US and
India, output is growing at a record rate.
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WIND
POWER
FACTS
1 A modern wind turbine
makes it possible to
reduce carbon dioxide
emissions by 5,000
metric tons per year.
“We realized there
was value investing
in wind power that
we could capitalize
on ourselves.”
Åke Westberg
2 In the first seven
months, a wind turbine
produces as much
energy as was needed
for its manufacture.
3 In the early 1990s,
wind power was
found in a just a few
countries. Today
some 80 countries
invest in developing
wind power.
4 A Harvard University
study has found that
wind power has the
potential to supply
the world’s electricity
needs more than
40 times over.
5 In 2009, the wind
power industry had
revenue of about 64
billion dollars and
employed 500,000
people. By 2020
employment in the
industry is expected to
reach 1 million jobs.
6 Up to the end of the
19th century, wind
was one of the world’s
most important energy
sources. The first wind
turbine, or windmill,
to produce electricity
was constructed in
1888, and it remained
in use for 20 years.
SCA SHAPE 4 2012 39
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SCA INSIDE
News from
Internal
news
SCA
from SCA
Hygiene for
homeless French
THIS WINTER Red Cross
volunteers conducted a pilot
operation involving the distribution of 40,000 SCA hygiene kits to people living on
the streets in France. This
marked the start of an initiative set to expand across
the whole of France in 2013
with the distribution of some
100,000 hygiene kits. Hygiene remains a key factor
for health, self-respect and
social integration.
”Right to hygiene is our
core concern in SCA. This
implies that no one, whatever their gender, age or living conditions, should suffer
because of insufficient
We walk the global
innovation talk
SCA PARTICIPATED in the
‘Innovative Sweden’ exhibition at Tongji University in
Shanghai throughout the
month of November. November 21 was a dedicated
“SCA day” where the company presented its way of
working with innovations to
students, policymakers, customers and employees. SCA
has six innovation centers
across the globe, including
one in Shanghai, which enables international collaboration in teams driving SCA’s
innovation agenda forward
and creating best prac-
tice sharing and synergies.
One outtake from this
collaborative innovation
approach is the successful
incontinence care product
TENA Belt which was
launched in China in 2011
and is now being launched in
other markets. The innovation
builds on local knowledge
of usage patterns gathered in the Chinese market.
The product comes with a
washable belt that can be
used several times and its
carbon footprint is 25 percent lower compared with
previous products.
hygiene. Our commitment
to this area contributes to
strengthening the role that a
company such as SCA can
play on a global scale,” says
Marc Sanchez, president
SCA Hygiene Products
France.
The SCA/Red Cross
partnership in France will be
launching other initiatives in
2013: education for teenagers and autonomy and wellbeing for senior citizens.
Three web awards to SCA
SCA HAS RECEIVED a number of prizes for its
corporate website www.sca.com this fall.
In communications consultant KWD’s webranking, SCA was no 3 in the European top
500 ranking (an improvement of two places)
and won for the second consecutive year the
Swedish ranking. KWD reviews more than 900
websites globally based on the requirements
and demands from the capital market.
SCA ended up in second place of the Nordic companies in the CSR Online Awards
organized by communications consultancy
Lundquist. The study is based on what 400
sustainability experts deem most important in
company’s sustainability communication.
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sca inside
Photos SCA, IStoCkphoto
Bladder focus
in Soweto
On this year’s National Women’s Day (Au-
gust 9) in South Africa, the TENA team took
the opportunity to raise awareness around
incontinence.
Dianna Bailey, TENA’s training specialist,
was invited to give a talk on incontinence at
the Methodist Church in Pimville, Soweto,
which hosted a women’s empowerment event
on the day.
Awareness of both bladder weakness and
incontinence products is clearly spreading
as a result. The wholesaler in Soweto has
reported a growth in interest in both bladder
weakness and TENA’s products.
Scenes from the SCA’s “apology” on YouTube.
Bodyform a
viral PR success
it all started as an ironic post
on the Facebook page of SCA’s
Bodyform brand. Briton Richard Neill
wrote that he had seen commercials as a child showing how women
seemed especially happy and played
extreme sports at certain times of
the month, all to the accompaniment
of cool soundtracks. The commercials ended with a shot of blue
water – a time-honored substitute for
blood in feminine hygiene commercials – pouring over white wings. As
an adult, Neill realized to his great
surprise that reality didn’t exactly
conform to the commercial.
Neill’s post got 90,000 “likes” in
just a few days. About a week later,
SCA presented a viral response for
social media apologizing to Neill in
tongue-in-cheek fashion for causing
his disappointment and surprise.
It was a complete PR hit for Bodyform. Leading British dailies including the Daily Mirror and The Guardian covered the story as well as US
New York Times. SCA has also been
trending on Twitter and got space in
other English-language media. Today more than 3 million people have
seen SCA’s “apology” on YouTube,
and it continues to snowball.
See the post here:
www.youtube.com search bodyform
responds
www.facebook.com/Bodyform
New pulp product
launched
Celeste Filter is a new kraft pulp product
recently launched by SCA Forest Products’
Östrand pulp mill in Sweden.
“Celeste Filter is more porous than our
other Celeste products and is therefore well
suited for production of products such as oil
and air filters,” says Johan Malker, product
manager for Celeste.
The new craft pulp was developed after
SCA spotted a market and a demand for this
type of product. The production of Celeste
Filter has not involved any major investments.
SCA Östrand tailors the whole process from choice of
raw material to the finished product in order to produce
pulp for specific purposes.
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sca inside
ISO certificate
to Malaysia
SCA’S Two personal care sites in Kuala
Lumpur, Malaysia have been certified in accordance with the environmental management system ISO 14001. The Group’s ambition is to have all production sites certified in
accordance with ISO 14001.
“It is important that we keep up the momentum to sustain these positive results and
maintain these ‘green’ ways of working,” says
Koay Yim Moi, ISO14001 project leader in
Malaysia.
Fighting hunger
In AmerICA, about one in five children – more
than 16 million – struggle with hunger. The
problem is not due to a lack of food, it’s getting the food to where the hungry mouths are,
such as schools, struggling neighborhoods,
parks and community centers.
The campaign “No Kid Hungry” focuses on
raising money to get food where it is needed
most. Tork in America supports the campaign
run by the Share Our Strength organization.
To date SCA has donated 150,000 US dollars
and now launches a fundraising program,
Dine Out for No Kid Hungry, involving thousands of restaurants, donating 1 dollar for
each Tork Xpressnap Signature Tabletop
dispenser sold.
Campaign ad for
“No kid hungry”.
More than four million trees were planted in previously deforested areas.
Brazil forest project
scores four awards
The SCA And AmATA partnership
project hit the headlines in the UK
earlier this year with the launch of a
documentary film about its work to
plant trees in previously deforested
areas of Brazil.
SCA has through its tissue brand
Velvet planted more than four million
native trees in areas of the rainforest
that have previously been deforested.
Its success has now been
heralded by the Communicate
national awards in the UK, which are
designed to recognize the benefits
of corporate partnerships, sponsorship and philanthropy and provide
a benchmark for excellence in
corporate engagement.
Velvet and Amata collected four
awards in all. Other major companies competing for awards included
Coca-Cola, FedEx Express, BT,
Barclays and British Gas.
42 sca Shape 4 2012
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25%
Positive
reactions after
1.5%
The sca share price rose
after the capital
Market day.
Capital
Market Day
sca inside
sca’s market share in
incontinence care globally.
80%
Hygiene products account
for 80 percent of the
company’s sales.
text marita sander photo sCa
a new efficiency program and new targets for the tissue and forest products
operations were news conveyed when
sca held its capital Market Day. the
sca share price rose by 1.5 precent,
and several analysts raised their target
price after the day.
t
HE INtErEst IN partIcIpatINg in SCA’s
Capital Market Day in Stockholm at the
beginning of November was huge and the
approximately 120 investors, analysts and
journalists who had registered filled the room in
photographic museum to the limit.
This was the first Capital Market Day for the
“new” SCA. After the divestment of its packaging
operations and the acquisition of Georgia-Pacific’s European tissue business, hygiene products
account for 80 percent of the company’s sales and
forest products for the remainder.
“In recent years we have worked hard to change
the culture within the SCA to make it more performance oriented and to move quicker”, said
Jan Johansson, president and CEO. “It is perhaps
the most difficult of all, but also what can give the
greatest effect.”
The target for return on capital employed
(ROCE) has been increased for Tissue from 13 to 15
percent over a business cycle, and for Forest
Products it was changed from 11 percent to
being in the top quartile of the sector. The
ROCE target for the group, however, remains
at 13 percent.
“I feel very confident that we will deliver on
the targets we have communicated”, said Jan
Johansson. “One way to improve profitability
is by reducing costs and we have initiated a
new efficiency program within the hygiene
operations that will provide annual cost savings of some EUR 300 million.”
J
aN JoHaNssoN emphasized, however,
the importance of having the courage to
invest for growth, not least by focusing on
innovation. Growth will also derive from
new markets and India is a market where SCA
would like to see an establishment.
SCA is the world’s largest provider of incontinence products with a market share of 25
percent, but there is nonetheless a huge growth
potential in the area. Penetration in Europe is as
low as 37 percent and SCA is working to increase
this, not least by breaking the taboos surrounding incontinence. Emerging markets have a lot
of potential, not least China with its aging population that the government wants to be able to
live in their homes as long as possible.
“I feel very
confident that
we will deliver
on the targets
we have communicated.”
CEO Jan Johansson
sca Shape 4 2012 43
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Georgia-Pacific France SAS - Bois Colombes - capital social de 129 581 664 euros - 702 055 187 RCS Nanterre
A GENUINE MAKE-UP REMOVER SKIN CARE IN A WIPE
NO MORE EXCUSES FOR THE LAZY ONES
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Wipes impregnated with a make-up remover milk with cotton seed extracts
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